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Grandparents Provide $731 Billion in Unpaid Care of Grandchildren
AARP exclusive: Grandparents provide $172 billion in direct financial support to grandchildren, making them a critical source of family stability and security
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Key takeaways
- Nine in 10 grandparents provide financial support for grandchildren, with one-quarter saying it requires sacrifice.
- Fifteen percent of grandparents take care of grandchildren on a daily or almost daily basis.
- Eighty-one percent of grandparents say they feel confident in taking care of grandchildren, with 75 percent feeling appreciated.
Grandparents play a vital role in supporting working parents and multigenerational families, providing an average of 510.9 hours of childcare annually, nearly 10 hours per week for those who care for their grandchildren, according to a new report from AARP Research.
America is home to an estimated 65 million grandparents, down from 70 million reported in a 2018 AARP report, yet their influence on family life remains substantial. Sixty-nine percent of grandparents provide some level of care for their grandchildren, while 15 percent provide care daily or almost every day, often taking on responsibilities that resemble part-time or even full-time childcare. Meanwhile, 31 percent say they don’t provide caregiving support. Grandparents have an average of five grandchildren, and nearly 1 in 4 (23 percent) say at least one grandchild is multiracial or of a different ethnicity than they are, highlighting the increasing diversity and complexity of today’s multigenerational families.
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The report points to a clear pattern: Grandparents are increasingly central to both the financial stability and day-to-day lives of their families and grandchildren. Five key findings stand out:
1. Grandparents are a key financial safety net
Grandparents are providing far more than hands-on care and support; they are making substantial financial contributions that help ease the economic pressures many families face. Nine in 10 grandparents spend money on their grandchildren, contributing an average of $2,654 annually.
While grandparents are most likely to spend on gifts for birthdays and holidays, they also help cover essential expenses such as clothing, food, school supplies, childcare, camps and family travel. Seventy percent say there was no sacrifice or financial strain, while 14 percent said there was. Notably, 41 percent provide financial assistance for basic necessities, and 8 percent help pay for medical, dental or mental health care.
Taken together, grandparents provide an estimated $172 billion annually in direct financial assistance. When combined with the estimated $731 billion in unpaid caregiving, grandparents contribute roughly $903 billion to families and the broader economy each year.
2. Living close strengthens grandparent involvement
Where grandparents live has a significant impact on how often they interact with and care for their grandchildren. Nearly half have at least one grandchild living nearby, making regular visits, caregiving and participation in family life more practical.
Living close to grandchildren is so important that more than 1 in 4 grandparents (28 percent) have made a major life change to live closer to family or for family to liver closer to them. Most relocated to the same community or region, while others moved into a child’s home to provide more direct support.
3. Affordability and well-being are top concerns
Grandparents express deep concern about the broader social and economic conditions shaping their grandchildren’s futures, with affordability emerging as a dominant issue. About 45 percent cite the future cost of living as a strong concern, reflecting uncertainty about whether younger generations will be able to keep pace with rising housing, health care, education and everyday expenses. Other major societal worries include gun violence (30 percent), educational quality and access (28 percent) and economic instability (26 percent).
Roughly 1 in 5 report worries about education and learning (22 percent), mental and emotional well-being (21 percent), connection to family (21 percent), and financial security (21 percent). “Taken together, these responses suggest that grandparents are thinking simultaneously of the large-scale systems that will define opportunity and safety, and the immediate experiences that shape how secure, supported and connected their grandchildren feel in everyday life,” says Indira Venkat, senior vice president of research at AARP.
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4: Technology is helping grandparents stay connected
For the majority of grandparents who live more than 50 miles from at least one grandchild, digital technology has become essential for maintaining strong relationships. More than three-quarters (76 percent) of grandparents rely on texting, video calls, social media and family group chats to stay connected.
Traditional phone calls remain the most common form of communication, but many grandparents have embraced newer technologies that allow them to exchange photos, participate in milestone events and engage in day-to-day family conversations.
“As families become increasingly geographically dispersed, digital communication is helping grandparents remain active participants in their grandchildren’s lives,” says Venkat.
5. Grandparents embrace an increasingly diverse generation
Today’s grandparents are navigating family dynamics that look very different from those of previous generations. As American families become increasingly diverse, grandparents are building relationships with grandchildren whose identities and ethnic backgrounds may differ significantly from their own. Nearly one-quarter of grandparents report having at least one grandchild who is biracial, multiracial or of a different race or ethnicity than they are. In addition, 9 percent say they have a grandchild whose religious faith differs from theirs, and 7 percent have a grandchild who is LGBTQ+, as reported by the grandparents.
The report also highlights the growing prevalence of neurodiversity. One in 5 grandparents report having a neurodivergent grandchild, including children with conditions such as autism spectrum disorder, attention deficit hyperactivity disorder, dyslexia and other neurological differences. For these grandparents, caregiving and support may involve learning new communication styles, advocating for educational resources, attending therapy appointments or helping grandchildren navigate a world that is not always designed with their needs in mind.
Lisa Salyer and her three grandsons (left to right): Griffin, Rowan and Hutson.
Courtesy Lisa Salyer
A grandmother’s second act: Helping raise three grandsons
For Lisa Salyer, 64, and her husband Bill, 65, helping raise their three grandsons has meant more than babysitting or occasional financial support; it has involved a major investment in keeping family close.
The Athens, Ohio, couple is spending roughly $90,000 to build a three-car garage with an apartment above it so their younger daughter, Elyse, and her 4-year-old son, Griffin, can live on the family property following a recent divorce. While the apartment is still being completed, mother and son have already moved into the Salyers’ home, where Lisa provides daily childcare while Elyse works.
“We wanted her to have her own space but still be close,” says Salyer. “This new apartment will give her independence while knowing she has support.”
The family’s commitment to hands-on support extends beyond Griffin. Salyer’s older daughter, Abie, lives about 45 miles away with her two sons, Hutson, 5, and Rowan, 3. When Hutson was born, Salyer regularly drove 45 minutes each way to provide childcare, a routine that became a central part of her retirement after a 37-year career as a flight attendant.
Known as “Bubby” to Hutson and Rowan and “Nene” to Griffin, Salyer says being present in her grandsons’ lives is worth the considerable time and money investment. “I just love being their grandma. There’s nothing better than having them close and being part of their everyday lives.”
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